01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
XPO, Inc. reported first-quarter 2026 revenue of $2.10 billiona, up 7.3% from $1.95 billion a year earlier, with the filing noting that foreign currency movement increased revenue by approximately 4.4 percentage points.
Net income rose to $101 millionb from $69 million, and diluted earnings per share were $0.85 versus $0.58. Operating income increased to $174 million from $151 million, and interest expense declined to $53 million from $56 million. Consolidated adjusted EBITDA is shown in Note 2 as $319 million, compared with $278 million in the prior-year quarter.
By segment, North American LTL revenue rose 4.9% to $1.23 billion and adjusted EBITDA increased to $290 millionc from $250 million, driven by higher yield, shipments per day, and fuel surcharge revenue. European Transportation revenue increased 11.0% to $868 million, though the filing states that after currency effects revenue was essentially flat, and adjusted EBITDA was $33 million versus $32 million. The filing states that the previously announced board authorization to divest the European business remains in effect, with no assurance that a transaction will occur.
Cash generated from operations was $183 milliond, compared with $142 million a year earlier. Capital expenditures fell to $111 million from $199 million, and the company repurchased $30 million of common stock and repaid $30 million of term loan principal, with an additional $70 million repaid in April 2026.
Cash and cash equivalents were $237 million at March 31, 2026, and total liquidity was approximately $837 million. Management expects full-year 2026 gross capital expenditures of $500 million to $600 million.
02—Key points
Key Highlights
- Revenue of $2,096 million, up 7.3% year over year; foreign currency movement added approximately 4.4 percentage points.
- Net income of $101 million versus $69 million; diluted EPS of $0.85 versus $0.58.
- North American LTL revenue up 4.9% to $1,229 million; adjusted EBITDA up to $290 million from $250 million, with shipments per day up 3.0% and gross revenue per hundredweight (excluding fuel surcharges) up 4.0%.
- European Transportation revenue up 11.0% to $868 million, but essentially flat excluding currency effects; adjusted EBITDA of $33 million versus $32 million.
- Operating cash flow of $183 million versus $142 million; capital expenditures reduced to $111 million from $199 million.
- Shareholder returns and debt paydown: $30 million of share repurchases in Q1 2026 with $595 million remaining under the authorization, $88 million of tax withholding payments on vested stock awards, and $30 million of term loan principal repaid in Q1 plus $70 million in April 2026.
- Total liquidity of approximately $837 million, including $600 million available under the Revolving Credit Facility; the company states it believes liquidity is sufficient for the next 12 months.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.10B$1.95B | +7.3% |
| Operating Income | $174.00M$151.00M | +15.2% |
| Net Income | $101.00M$69.00M | +46.4% |
| EPS (Basic) | $0.87$0.59 | +47.5% |
| EPS (Diluted) | $0.85$0.58 | +46.6% |
| Shares Outstanding (Basic) | 117.00M117.00M | 0.0% |
| Shares Outstanding (Diluted) | 119.00M120.00M | −0.8% |
05—Questions
Frequently Asked Questions
What drove the improvement in profitability this quarter?
Operating income rose to $174 million from $151 million. In North American LTL, the filing attributes higher adjusted EBITDA to higher yield and shipments per day, higher fuel surcharge revenue, productivity improvements, lower purchased transportation, and lower vehicular insurance costs, partially offset by lower average weight per shipment, higher fuel costs and wage inflation.
How much of the European Transportation revenue growth came from currency?
Revenue increased 11.0% to $868 million, and the filing states foreign currency movement increased segment revenue by approximately 10.9 percentage points. After the currency effect, the filing describes revenue as essentially flat compared with the same period in 2025.
What is the status of the European business?
The filing states that the previously announced authorization by the Board of Directors to divest the European business remains in effect. It also states there can be no assurance that a divestiture will occur or as to its terms or timing.
How is the company managing its debt and capital allocation?
In Q1 2026 the company repaid $30 million of Refinancing Term Loan B-2 principal and repurchased $30 million of stock. In April 2026 it repaid an additional $70 million of term loan principal, including $45 million classified as current at March 31, 2026. Total debt principal was $3,367 million at March 31, 2026, and the weighted average term loan rate was approximately 5.42%.
What is the outlook for capital spending and the Allianz litigation?
The company anticipates full-year 2026 gross capital expenditures of $500 million to $600 million, funded by cash on hand, operating cash flow and available liquidity. For the Allianz insurance contribution litigation, the filing states a final judgment hearing is scheduled for May 2026, and the company recognized a charge of approximately $35 million in the third quarter of 2025 for its estimated share of the liability.
06—Continue